Found another simple mistake yesterday on a worker’s compensation premium audit. An owner/officers payroll was slid into the governing work comp class. This is a janitorial service client of mine in the city of Chicago and the error was simple to find. It was simple to find because we completed a premium audit package for the insurance auditor. We had a summary to refer back to once the final audit was completed by the insurance company.
BUILD AN OVERCHARGE-PROOF WORKERS COMPENSATION PREMIUM AUDIT PACKAGE
- Utilize a spreadsheet
- From your Illinois Unemployment Quarterly Reports – total each employee’s earnings for the year.
- Slide each employee into a job duties column (make sure you’re specific as to the duties which correspond to the appropriate work comp classification).
- Adjust for Excluded Payroll (overtime, tips, certain allowances, contributions to benefit plans, etc.)
- Have your Certificates of Insurance ready for any subcontractors
- Cap owners pay to the appropriate number